Daily Market Review 19 of September
OVERVIEW

After reaching 4 month maximums on Friday September 14 and after their second testing on Monday September 17, the rate of the Euro during trading developed downward gradual correction and the rate tested the area of 1.3030. The pressure on the European currency was made by the figures of the German research institute ZEW. The index of economic sentiment, aimed at forecasting the development of events for half a year, in September comprised - 18.2 points in comparison with -25.5 points in August. The index of current conditions comprised 12.6 points in September what was worse than the forecast ranged on the level of 18 points. The risks of recession still remain in Europe. The US economy demonstrates a slight growth. Let us remind that on September 13 the Institute of the World Economy in the issued report forecasted that in the current year the economic growth of Germany will slow down to 0.8% in comparison with 3% last year. That’s why the main correction of  the Euro corresponds to the gradual euphoria decrease on the markets after the actions of  the ECB and FRS last week. 

CURRECNIES

EUR/USD


Yesterday Euro depreciated against the US Dollar from 1.3120 to 1.3028 with further bounce to 1.3063. This move complies with the current correction. It is anticipated that the euphoria from the ECB and FRS actions will stop completely by the end of the week. Perhaps the Euro is going to start to be actively sold soon. The correction levels are meanwhile remain without any changes.



GBP/USD

Yesterday the Pound slightly changed against the US Dollar from 1.6219 to 1.61266 with subsequent recoil to 1.6232. Trading on the same level apparently might cause a correction. Analysts believe that the Pound and the Euro are going to decline again.